The latest event to impact the crypto markets, the downfall of FTX, is a practical example of how crypto stored on exchanges does not belong to the people that make use of the exchange platform. The saying “Not your keys, not your crypto” explains this best.
The crypto influencer, Dan Gambardello (@cryptorecruitr), uploaded a video to his YouTube channel, Crypto Capital Venture, yesterday. In the video, he spoke about how safe investors’ crypto is on exchange platforms and used the collapse of Celsius as an example.
Celsius, the crypto giant, collapsed last year, which resulted in billions of dollars being wiped out. The price of the crypto giant’s native crypto, Celsius (CEL), plummeted more than 80% in 2022. As a result, the price of CEL now stands at $0.5086 at press time according to CoinMarketCap, after trading at a high of $9.257.
The collapse of Celsius exposed the level of risk that crypto investors open themselves up to if they store their crypto on exchange platforms, as all Celsius investors and users were unable to withdraw their funds.
In the video, Gambardello stated that the same terms and conditions of another well-known crypto platform, Coinbase, are similar to those of Celsius. One important fact that investors and traders using Coinbase need to be aware of is that if Coinbase files for bankruptcy, the crypto stored on Coinbase will be used in bankruptcy proceedings.
This means that ownership of all crypto stored on Coinbase will become Coinbase’s property, according to the influencer.
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